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Tokyo shares surge at open despite rioters at US Capitol
TOKYO, Jan 7, 2021 (BSS/AFP) – Tokyo’s benchmark Nikkei index opened higher on Thursday as US shares surged despite rioters storming the US Capitol in an effort to overturn the result of the presidential election.
The Nikkei 225 added 1.05 percent, or 284.52 points, to 27,340.46 in early trade, while the broader Topix index rose 1.22 percent, or 21.92 points, to 1,818.10.
The Tokyo market was expected to stay buoyant after Wall Street racked up healthy gains, in part on the expectation of fresh US stimulus under a Democratic administration, with the Dow Jones index marking another record close by gaining 1.4 percent.
The dollar stood at 102.96 yen, nearly flat from 102.99 yen seen Wednesday in New York.
Investors largely shrugged off scenes of a shocking riot at the US Capitol where angry Donald Trump supporters forced their way into the legislative compound, prompting evacuations of lawmakers who were preparing to ceremonially validate the election victory of Joe Biden.
The incoming president may face a deeply divided nation but should enjoy relative political stability in Washington, as his Democratic Party gained control of both the presidency and Congress after double victories in the key Senate runoff elections in the state of Georgia.
“We expect (buying) to continue on a receding sense of uncertainty over the US politics,” Okasan Online Securities said.
“Of course, the occupation of Congress by Trump supporters was unprecedented chaos. But they will be ousted in due time.”
“We expect the Japanese indices to lead the way and show solid performance,” Okasan added.
Players were also monitoring developments in Japan as Prime Minister Yoshihide Suga prepared to issue a month-long state of emergency in the greater Tokyo region in a bid to slow the fast spread of coronavirus infections.
Suga is largely expected to target restaurants and bars, calling for them to close by 8 pm, as dining has been singled out as a particular risk factor in the Japanese capital.
He is also expected to urge the public to refrain from unnecessary outings after 8 pm, but allow major events and sports games to go on as long as they limit the number of spectators.
Schools are expected to stay open under the emergency order.
Among major shares, Toyota rose 0.67 percent to 7,870 yen.
Nintendo added 0.31 percent to 64,980 yen. Sony rose 1.31 percent to 10,465 yen.
Uniqlo-operator Fast Retailing rose 0.45 percent to 87,350 yen. Mitsubishi UFJ Financial Group rose 3.60 percent to 480.6 yen.
Construction equipment maker Komatsu surged 4.33 percent to 3,000 yen. Tokyo Electron, the world’s third-largest producer of tools to build semiconductors, added 0.68 percent to 38,530.
BSS/AFP/MSY/0704 hrs